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Thermo Fisher Scientific Inc (NYSE:TMO)
Cash Flow from Operations
$2,543 Mil (TTM As of Sep. 2015)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Sep. 2015, Thermo Fisher Scientific Inc's Net Income From Continuing Operations was $477 Mil. Its DDA was $428 Mil. Its Change In Working Capital was $-131 Mil. Its cash flow from deferred tax was $-68 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $33 Mil. And its Cash Flow from Others was $5 Mil. In all, Thermo Fisher Scientific Inc's Cash Flow from Operations for the three months ended in Sep. 2015 was $744 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Thermo Fisher Scientific Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Thermo Fisher Scientific Inc's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

Thermo Fisher Scientific Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 953.7 (Dec. 2014 ) + 80 (Mar. 2015 ) + 764.9 (Jun. 2015 ) + 743.9 (Sep. 2015 ) = $2,543 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Thermo Fisher Scientific Inc's net income from continuing operations for the three months ended in Sep. 2015 was $477 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Thermo Fisher Scientific Inc's depreciation, depletion and amortization for the three months ended in Sep. 2015 was $428 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Thermo Fisher Scientific Inc's change in working capital for the three months ended in Sep. 2015 was $-131 Mil. It means Thermo Fisher Scientific Inc's working capital declined by $131 Mil from Jun. 2015 to Sep. 2015 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Thermo Fisher Scientific Inc's cash flow from deferred tax for the three months ended in Sep. 2015 was $-68 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Thermo Fisher Scientific Inc's cash flow from discontinued operations for the three months ended in Sep. 2015 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Thermo Fisher Scientific Inc's stock based compensation for the three months ended in Sep. 2015 was $33 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Thermo Fisher Scientific Inc's cash flow from others for the three months ended in Sep. 2015 was $5 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Thermo Fisher Scientific Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1697619758519971,0231,2581,2791,8961,980
CF_DDA 2417577937877468609841,0001,6851,688
ChangeInWorkingCapital -100-24-318115-176-265-34121168-450
CF_DeferredTax -74-91-131-249-268-123-302-473-622-512
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 005768828078911170
Cash Flow from Others 16981448611711755-7-624110
Cash Flow from Operations 4061,4841,4201,6591,4981,6912,0402,0112,6202,817

Thermo Fisher Scientific Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 318343543279470604385512477606
CF_DDA 250249366435456429416420428425
ChangeInWorkingCapital 6138518244-19-76-622-71-131374
CF_DeferredTax -140-268-207-253-123-38-102-116-68-226
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2324253131312831330
Cash Flow from Others -7-5-644154-1384-25-11549
Cash Flow from Operations 506729101889676954807657441,228
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